[Bronwen Kausch] The first day of trade for technology company AST-A (the result of a merger between AST and Abraxas) got off to a quiet start with low volume trade by mid-morning. However, Gerrie de Klerk, AST-A chairman was optimistic when ITWeb spoke to him at the JSE at 10.45am.
Opening at R3, the stock was trading at R2.95 although De Klerk says the share was undervalued. He is very excited about AST-A`s future and says that a turnover of over R1 billion for the first year will not be a problem for the company.
Some R560 million has been signed already in long term contracts. The combined forces of Abraxas and AST will bring the offer of IT management and consulting, outsourcing, software, networking and focused solutions for mining, manufacturing and financial services sectors.
The last day of trading as separate entities on Friday saw AST`s share price gaining 5c to close at R2.75, while Abraxas lost 8c to close at R2.32. Entering the IT sector at a time when many shares are under-performing did not perturb De Klerk, who says AST-A is going to be a big mover and is a share to watch.
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